What does AOV represent?

AOV stands for Average Order Value, which is a key performance indicator used in e-commerce and digital sales to measure the average amount of money each customer spends per order. This metric is crucial for businesses as it helps them understand customer purchasing behavior, set pricing strategies, and optimize marketing efforts. By improving the AOV, companies can boost sales and revenue without necessarily increasing the number of customers.

In contrast, the other terms such as Aggregate Order Value, Annualized Overall Value, and Additional Order Value do not specifically capture the concept of averaging individual orders over a set period, making 'Average Order Value' the most precise and widely recognized term in this context.